Sift together the flour, baking powder, nutmeg, and salt. In a separate bowl, cream together shortening and sugar; add one egg at a time, beating about 1 minute after each addition. Blend in lemon peel. Gradually add flour mixture to the shortening and eggs, alternating flour with small amounts of milk, stirring and mixing well.

Grease and flour a tube pan and spread one-quarter of the batter on the bottom. Sprinkle with caraway seeds. Pour in another quarter of the batter and sprinkle with poppy seeds. Add the third quarter and sprinkle with anise seeds. Then top with the remaining batter.

Bake for about 80 minutes. Remove from oven, but let cool on rack for 15 minutes before removing cake from pan. Sprinkle with powdered sugar.